| 24(1) | 901017 |
| S. Short | |
| (613) 957-2134 |
19(1)
December 17, 1990
Dear Sirs:
Re: Subsection 118.2(2) of the Income Tax Act and Paragraph 5700(m) of the Regulations
This is in reply to your letter of May 28, 1990 and further to our telephone conversations concerning the following situation. We apologize for the delay in our response.
As we understand it, Mr. A is disabled and confined to a wheelchair. He has a primary residence in the city and owns a summer residence which is accessible only by boat. Mr. A plans to install two lifts at his cottage, one to allow him access from the lakeshore to and from the land in front of the cottage and another to allow him access from the shore to or from his boat.
You have asked us whether expenses relating to purchasing and installing these lifts would qualify as a medical expense under either paragraph 118.2(2)(m) of the Act and Regulation 5700(m) or under paragraph 118.2(2)(l.2) of the Act.
Our Comments
Regulation 5700(m) requires that a power-operated lift be designed exclusively for use by a disabled individual to allow him access to different levels of a building or to assist him to gain access to a vehicle. In our view, a boat is not a vehicle within the ordinary and everyday meaning of that word and thus a lift to provide access to and from a boat would not qualify under paragraph 118.2(2)(m) of the Act and Regulation 5700(m) as a medical expense.
In our recent telephone conversation (Short 19(1) you explained that the lift to and from the lake would not involve a modification to the cottage but would be installed from the lakeshore to the edge of a cliff in front of the cottage. The taxpayer would use a ramp to exit the cottage and traverse the flat area of the property to the lift at the edge of the cliff.
We agree with you that the definition of "dwelling" as used in paragraph 118.2(2)(l.2) would include a cottage. However, in order for the lift to qualify as "modifications to a dwelling" for purposes of that paragraph, the lift would have to be installed in or attached to the cottage.
From the information provided to us, we understand that this will not be the case. Accordingly, we must advise you that the lift to and from the lakeshore would not qualify as a medical expense under paragraph 118.2(2)(l.2) of the Act.
He have taken the liberty of forwarding a copy of your letter and our reply to officials of the Department of Finance who have responsibility for the determination of tax policy in order that they may consider the need for an amendment to the Act concerning this situation.
We regret that our reply could not be more favourable and trust the above comments are of assistance to you.
Yours truly,
for DirectorBusiness and General DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch
c.c. Mr. R. D'Aurelio, Director Current Amendments Division